Please guide me, I have two car in my asset block, but the both has been sold in FY 18-19.
Now while drafting computation of the company, what will be the treatment of depreciation. In the block wdv as on 31/03/2018 was more then the sale value of the 2cars.
secondly as per company act I have charged the depreciation for the period the car was hold by the company and the balance has been adjusted with the sale value and transfer the same in Profit and loss account.
As per sec50 of Income Tax Act, If the whole of the capital assets forming part of a block of assets have been sold during a year and the assessee has suffered a loss after deducting the net sale consideration from the written down value of the block of assets then such loss shall be treated as short term capital loss and no depreciation shall be allowed from such block of assets.
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